Auger Drilling Update for the Southern Gold Line Project, Sweden
Auger Drilling Update for the Southern Gold Line Project,
Sweden
VANCOUVER, BC
,
July 12, 2021
/CNW/ - Capella Minerals Ltd. (TSXV: CMIL) (FRA: N7D2)(the "Company" or "Capella")
is pleased to provide the following update on auger drilling and regional reconnaissance activities on its 100%-owned
Southern Gold Line Project in northern
Sweden
. Auger drilling is currently focused on the southernmost Rötjärnen claim
(Figure 1), where geochemical vectors are being utilized to determine the source of gold-bearing boulders identified on
surface, whilst prioritization of the remainder of the 500 square kilometre property is being undertaken through regional
geochemical surveys and mapping/sampling programs.
Highlights
Anomalous gold and arsenic values have been returned from initial auger (Hilti) drilling of tills located up the interpreted
glacial flow direction from gold-bearing boulders on the Rötjärnen claim (Figure 2). Gold values ranged from below
detection limit to 110 parts per billion ("ppb") whilst arsenic values, an important pathfinder element in orogenic gold
systems, ranged from below detection limit to 40 parts per million ("ppm"). A follow-up auger drill program will be
initiated in late-July to continue exploration efforts to the northwest, towards an area where historical scout drilling
appears to have targeted gold deposits within a major flexure in a regional structural corridor.
A detailed review of historical scout drilling completed approximately 5km to the NW of the gold-mineralized boulder
field at Rötjärnen is underway (Figure 3). A total of 15 scout holes were completed between 2003 and 2013 by third-
parties and targeted gold mineralization in a major regional flexure interpreted from airborne magnetic data. Drilling
intersected calc-silicate alteration and anomalous gold values in meta-greywacke, although the low tenor of the gold
mineralization intersected (best intercept reported as
3m
@ 0.19 grams/tonne Au) suggests that the source of the
boulder field was not located.
Regional reconnaissance-level Bulk Leach Extractable Gold ("BLEG") sampling continues over the remainder of
Southern Gold Line, with >50% of the property having been covered to date. The BLEG sampling program will assist
with the prioritization of areas for further detailed field evaluation and potential drill target definition.
Planning for a high-resolution drone magnetic survey over key target areas on the Southern Gold Line property is also
well advanced.
Experienced local geologist
Louise Lindskog
has been appointed to manage Capella's exploration programs at the
Southern Gold Line.
Eric Roth
, Capella's President and CEO, commented today: "I am very pleased to be reporting these positive exploration
results from our Southern Gold Line project, in addition to welcoming
Louise Lindskog
aboard as manager of our exploration
activities going forward. Our summer 2021 work program will include further auger drilling at Rötjärnen, where we continue
to vector in to the source of the gold-mineralized boulders, as well as regional reconnaissance programs over the remainder
of the district-scale property. Given the large property size and the need to complete systematic exploration programs, this
will be a busy summer for the field crews and is expected to lead to the definition of targets for discovery drilling in 2022."
Figure 1. Location of the Southern Gold Line claims in northern Sweden, with the three key target areas (Fäboliden North,
Fäboliden South, and Rötjärnen) indicated. (CNW Group/Capella Minerals Limited)
Figure 1. Location of the Southern Gold Line claims in northern
Sweden
, with the three key target areas (Fäboliden North,
Fäboliden South, and Rötjärnen) indicated.
Figure 2. Initial Hilti auger drill line (together with gold values) and the location of the gold-mineralized boulder field, together
with the interpreted direction of glacial flow at Rötjärnen. Image background contains regional magnetic data. (CNW
Group/Capella Minerals Limited)
Figure 2. Initial Hilti auger drill line (together with gold values) and the location of the gold-mineralized boulder field, together
with the interpreted direction of glacial flow at Rötjärnen. Image background contains regional magnetic data.
Figure 3. Historical drill holes located approximately 5km NW of the gold-bearing boulder field and within a major regional
flexure clearly identifiable from airborne magnetic data. (CNW Group/Capella Minerals Limited)
Figure 3. Historical drill holes located approximately 5km NW of the gold-bearing boulder field and within a major regional
flexure clearly identifiable from airborne magnetic data.
About the Southern Gold Line Project
The Company's Southern Gold Line project is located 100 km WSW of the regional administrative centre of Skellefteå in
north-central
Sweden
, and consists of 500 square kilometres (50,000ha) of mineral claims located in the immediate vicinity
of Dragon Mining Ltd's Fäboliden development project and Svartliden gold mine
1
. Further to the north of Svartliden lies
Agnico Eagle/Barsele Minerals's Barsele gold deposit (0.3Moz Au Indicated Resource and 2Moz Au Inferred Resource;
Source - Barsele Minerals Inc. NI 43-101 Mineral Resource Estimate dated
February 21, 2019
).
The Southern Gold Line concessions cover areas with similar geologic and structural settings to known gold deposits within
the broader Gold Line belt (orogenic gold deposits located at, or near, granitoid-greenstone contacts). Host rocks to the
gold mineralization are Paleoproterozoic in age.
Reconnaissance sampling and mapping programs are underway over the entire claim block, with Bulk Leach Extractable
Gold ("BLEG") samples having been collected across portions of the licenses and showing multiple areas with enrichment of
gold in stream sediments. Auger drilling is also underway on the southern Rötjärnen claim - where gold mineralized boulder
trains have been identified on surface - and is expected to continue through summer 2021.
The Company acquired its 100% interest in the Southern Gold Line Project from EMX Royalty Corp (NYSE:EMX;
TSXV:EMX) in late-2020.
1
References made to nearby mines and analogous deposits provide context for the Southern Gold Line project but are not necessarily indicative that the project hosts similar tonnages or grades of gold mineralization.
Quality Assurance and Quality Control (QAQC)
Analytical work for auger geochemical samples is carried out by the independent ALS Laboratory Group ("ALS"; ISO/IEC
17025:2017). Auger samples are received and then prepared at ALS's facility in Mala (
Sweden
) using method PREP-41
(where samples are dried at <60
o
C and sieved to -180 micron/80 mesh), before being sent to their Loughrea (
Ireland
)
laboratory for analysis using the low-level Au-ST43 method (gold by aqua regia extraction with ICP-MS finish). ALS's
internal QAQC program is complemented by the Company's own internal blank/standard/duplicate program which includes
every 30
th
sample being a field duplicate together with the regular insertion of blanks and certified gold standards.
Qualified Persons and Disclosure Statement
The technical information in this news release relating to the Southern Gold Line project has been prepared in accordance
with Canadian regulatory requirements set out in NI 43-101, and approved by
Eric Roth
, the Company's President & CEO, a
Director, and a Qualified Person under NI 43-101. Mr. Roth holds a Ph.D. in Economic Geology from the University of
Western Australia
, is a Fellow of the Australian Institute of Mining and Metallurgy (AusIMM) and is a Fellow of the Society
of Economic Geologists (SEG). Mr. Roth has 30 years of experience in international minerals exploration and mining project
evaluation.
On Behalf of the Board of Capella Minerals Ltd.
"Eric Roth"
___________________________
Eric Roth
, Ph.D., FAusIMM
President & CEO
About Capella Minerals Ltd
Capella is engaged in the acquisition, exploration, and development of quality mineral resource properties in favourable
jurisdictions with a focus on high-grade gold and copper deposits. The Company's copper focus is currently on the discovery
of high-grade VMS-type deposits within 100%-owned, district-scale land positions around the past-producing Løkken and
Kjøli copper mines in central
Norway
. The Company's precious metals focus is on the discovery of high-grade gold deposits
on its 100%-owned Southern Gold Line Project in
Sweden
, in addition to its active Canadian Joint Ventures with Ethos Gold
Corp. at Savant
Lake (Ontario
) and Yamana Gold Inc. at Domain (
Manitoba
). The Company also retains a residual interest
(subject to an option to purchase agreement with Austral Gold Ltd) in the Sierra Blanca gold-silver project in
Santa Cruz
,
Argentina
.
Field activities are ongoing on all projects, with the primary focus being to advance priority targets through the permitting
process and onwards to drilling and discovery.
The Company also holds marketable securities in Cerrado Gold Inc. (TSXV:CERT; 833,334 common shares) and Ethos
Gold Corp. (TSXV:ECC; 2 million common shares), providing Capella shareholders with indirect exposure to both
exploration and operational success by these Companies.
Cautionary Notes and Forward-looking Statements
This news release contains forward-looking information within the meaning of applicable securities legislation. Forward-
looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and
similar expressions, or are those, which, by their nature, refer to future events. Such statements include, without
limitation, statements regarding the future results of operations, performance and achievements of Capella, including the
timing, completion of and results from the exploration and drill programs described in this release. Although the
Company believes that such statements are reasonable, it can give no assurances that such expectations will prove to be
correct. All such forward-looking information is based on certain assumptions and analyses made by Capella in light of
their experience and perception of historical trends, current conditions and expected future developments, as well as
other factors management believes are appropriate in the circumstances. This information, however, is subject to a
variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those
projected in the forward-looking information. Important factors that could cause actual results to differ from this forward-
looking information include those described under the heading "Risks and Uncertainties" in Capella's most recently filed
MD&A. Capella does not intend, and expressly disclaims any obligation to, update or revise the forward-looking
information contained in this news release, except as required by law. Readers are cautioned not to place undue reliance
on forward-looking information.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this release.
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SOURCE
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For further information:
Capella Contacts: Eric Roth, Email: [email protected], Karen Davies, +1.604.314.2662
CO: Capella Minerals Limited
CNW 09:00e 12-JUL-21